The Daily Worker Newspaper, May 15, 1933, Page 4

Published by the Comprodaily Publishing Co Page Four 13th St., New York Olty, N. ¥. Ine., Telephone ALgonquin 4-79 Address and mail ehecks to the Daily Worker, 50 E. 13th St, dally except Sunday, at 8¢ B, . Cable “DAIWORK.” New York, MN. ¥ THE PEACE TALK IS NOW TURNING TO WAR THREATS ORGANIZE TO DEFEAT THE PLANS OF THE WAR MAKERS! Syppanese Army 40 Miles rom Peiping; Plane Carriers at Tientsin ness Aaa se Re Many Cities 0 lee cee ee 3,000 Chinese Dead in Week’s Fighting; ing oaertime pouring floods of bally. i n a German ee ee ; at & = i hoo about the end ie 6 : osenber2 01 ny ecalied to erin Peiping Streets Barricaded for Defense | cf'the erisis. “ Young Communists Defend Workers’ Districts i oes ——_—— | One paper hails GENEVA, May 14.—The plen: ion of Abe disarmament confers SHANGHAI, May 14.—The Chinese troops defending the road to Peip- | ing against the Japanese advance have lost over 3,000 dead in the past week's | fighting, according to General Ho-Ying-Ching, Chinese commander-in- | chief. __The Japanese army under Lieut. Gen. Nishi captured Shihhsia and © drove the Chinese defenders back to reports that the Nazi storm troops marched through an adjacent street to Tempelhofer situation, to win at Brilain over to support trenches hastily erected north of bates Toads Feld for the Hitler celebration, several hundred workers assembled in the Italy appears to have broken with| or the German arms demands and he i Miyun, main nese base only 40 | 1aVe Shown a gain Strac-mannstrasse. The crowd rapidly grew and started a demonstration, Nazi Germany over the Ausi s leaving for Berlin tomorrow. ‘Thi ; of .05 per cent for 9: ussol: having rejected Go i f hostility t miles north of Peiping. ie ceesk | marc‘ng in columns of four, shout- ¢——————. ere be) ona Bes ats rag disa Be ‘as thet pale vard along the Mandarin Highway, | dous? | of ig “Long live revolu- # $ # ‘i i Ve ward alon: e Mandarin Hig) dous? of Germany!” ant z cuimenceed tue rollel aoe in Weida. Austro-Germé here q have reached Fengjun, halfway be- tween Peiping and Chinwangtao. The 'S IT NOT a curious thing that under 7 Britain in rejecting Germany's in-| “ 1] ROTTERDAM, April 28 (by mai) Japanese command admitted that Soon the police appeared in their | Mist made a speech to them assail- |" Nazi envoy to Washington, who bil t warned nany that,“France is | ~The Chinese crew of the Dutch] their advance would continue at | o¢ the Nehest pictines ipietinetslge slot motor cers, running about wilaly |ing the purpose of this labor, after| is now rushing back to Germany |sistent demand for full re-ar sist the foe® He added {ff steamship “Oldekerk” went on strike | jest as far as Tungchow, 10 miles |the very speculators wham he de. | brandishing their clubs. They could| Which the young workers refused to| to report U. S. government attitude * tga fortifications alas the Ger- } yesterday refusing to sail with a car- | ge Sie ie eae do the work. | on the arms and debt situation, The Italo-German clash was fat are nearly completed and east of Peiping. go of arms and munitions that had been loaded for Japan. gurtieh. hae cee ades in the streets in [SPARK K s| GermanCommunists Demonstrate May Ist T= capitalist press is hailing the | | eh of prosperity on the ground | that the last drop in business is the smallest since the last drop in busi- | a remarkable im- provement in rail | carloadings, When |When you read the actual news it nounced with such evangelical fervor before the elections? |rise in the stock exchange in the last The inflation | Disarm Nazis; Socialist Local Joins C. P. BERLIN, May 2 (by mail) —A May Day demonstration was held by the Communists in the Strassmanstrasse, | tionary May Day!” The demonstra- tors sang the “Internationale.” | not arrest anyone, however, because the demonstrators melted among the spectators on the sidewalks. in the East End of Berlin. While the When they got together a Commu- Young Communists disarmed 11 Nazi storm troopers in Borsigwalde, Dr. Hjalmar Schacht | | Vienna, SUBSCRIPT! By Mail everywhere: One year, $6; six months, $3.30; 3 months, $2; ereepling Bardugh of Manbatiga aud Sharp Clash Arming Plan Hits Snag; Geneva Mee ence scheduled for Monday has be ler’s specch on the arms crisis befo: Wednesday. Rudsif Nadoi Berlin because of the gravi customs union. As ins France and Great a result Italy j ther emphasized by dispatches fro: isters were greeted by Austrian offi- of German Delegate y of thes —— telling how the Nazi min-|® I month, 7%, Foréign and ON RATES: New York Cit Bronx, as a t at Impasse to Thursday to await Hit- lag special session on has been recalled to pestpe re the Ri Paris, French Premier Daladier id that.the French were. working at munitions factori Today the Chinese seamen were : ‘ lutionary workers | industrial suburb of Berlin. late top capacity. “We are going to pre- }} | fs fi | preparation for the defense of the|two months has amounted to over| On April 29, revolutionary worke! % A 1 their arrival. Vice-Presi- driyen on board by armed police, Hite Ronin capture by the Japanese. | $7,000,000,000. Many a Wall Street | threw thousands of Communist leaf- | ¥ Big Order for Gun arnt Skubl of the Vienna Police told | Pare our national defenses to be sea | Spee by. secret service men, who Fi = | shark is now getting more speculative | lets from the roofs of several houses | Police Baffled Range Finders; Men [the nazi oMicials: “In the name of|to meet any national emergency,” or i brandished loa revolvers and) ‘The Japanese aircraft carrier Ka- | profits than since the balmy days of | into the Frankfurter Allee in Eastern| ¥RANKFURT-AM-MAIN, May 5. the Austrian Government, I inform|in other words, war, he told the | moi, 40 planes aboard, has anchored off Tientsin, and sent six of its planes out on a reconnaisance flight | forced some of the Chinese seamen | t@ march on board with their hands | ampton with engine trouble.” area. MD. Supreme Court has to decide | tributed in Neukoelln houses on May | mittee of the Communist Party, they | NEW Y es \ported>ito’ Havest d his finan-|as intermediary betweenl Germany ie: dace tater stalis : in aes 4 y, they | NEW YORK—300 workers at the Ported to have increase -/as interme ao ae ea oe SOhdekerk’y brad | guave air forece ae eithin cay fly. | 4. Whether the $2,500,000 annual sal-|Day. The police searched ali the| admit in a press release. They state: | 4:ma Fingineering Company, 265 36th {cial and military aid to the anti-| ana its opponents in Europe. Norman heen “compelled 10 put into South: |ing distance of the Peiping battle |2¥, Of the president of the American] houses, but failed to arrest anyone.) “In the course of police action | Sireet,, Brooklyn, are ‘working two|Nasi Heimwehr, Austrian Fascist| ir Davis, American Ambassador-at Sy een ee ey, Mee) een | Mg atmEaiCo) Ot tae Seow) Perle oe Company is not too high. Slogans Painted on Walls against the illegal Cassel district | Syirts’ on a government order for| a%™ed organization. }laige, conferred with Gorman Ambas~ | the Coolidge bull market. Rion Sera The workers of the American Tobacco - |Company, getting from $7-$11 a week BOLIVIA'S ARMS SUPPLY BLOCKED BY NEUTRALITY OF THREE POWERS Argentina, Chile, Peru’s Warships Sail on Despite League Ban BUENOS AIRES, May 14—Paraguay’s maneuver in formaliy declaring war on Bolivia in the Chaco conflict bore fruit yesterday as Bolivia’s neigh- hors, Chile, Peru and Argentina declared their neutrality in the war. Brazil is expected to follow suit. This makes it extremely difficult of Bolivia to obtain munitions as it i no seaport and must import goods along routes passing through the neutral countries. GENEVA, May 14—The futility of | the League of Nations’ pretended ef- Piueted and revictualled in Dutch Gui- ana and in Trinidad, although the League had warned all nations to re- fuse to furnish them any supplies. | The warships have left Trinidad for Para, Brazil, at the mouth of the Peru Declare Neutrality; could decide this question in no time. And they may pass their judgment on this question sooner than the Su- preme Court is aware. ee ere NE of the overjoyed beneficiaries of Roosevelt's New Deal prosperity |is a millhand in North Carolina, who wage increase of 10 per cent. Last | week, his weekly payroll amounted to | $2. Now he gets $2. 20. . E is a thrilting Society note. “Carol Gimbel, daughter of Ber- |mard Gimbel, grabbed a hasty lunch between events at the horse show in | Portchester, New York. She didn’t leven take time to sit down.” And some peopie think that the rich don’t have their troubles, too. The sales girls who work for Gim- | bels’ department store at starvation wages will be delighted to know that writes us that he has just received a| Berlin. Six comrades were seized by the police. Leaflets were also dis- In Hamburg groups of young Com- munists painted slogans for Youth Day all over the walls of the city. Eighty posters were pasted up in the streets, and 10,000 printed leaflets distributed. On Friday and Saturday | before May First short demonstra- tions were held in several parts of the city. | Three hundred and fifty young workers took part in one of these demonstrations, while 300 marched in another, carrying flags and placards. These demonstrations evoked much sympathy among the workers of Hamburg. In Elbing, a city northeast of Ber- lin, armed Nazis penetrated the working-class district of the city. The Young Communist League or- ganized the district’s defense and chased the brown-shirted murder gangs off. The Nazi special police was summoned, but the Young Com- munists retired into the workers’ quarters and the Nazis did not dare —The Cassel police has been unable | to uncover the illegal district com- | committee of the Communist Party, | offices and homes of the leaders of the movement were search by po- | lice squads. Much material, especially propaganda for the district locals, | was seized.” This makes it clear that the police | failed to find the illegal district com- mittee. The Socialist Party local in the | Hannoverian town of W. (for obvi- | ous reasons we are withholding the | town’s name) declared its willingness | to distribute the illegal Communist | newspapers. They also asked for a) Communist speaker for their May | Day celebration. In R. (another Hannoverian town) | the whole. Socialist local has applied | for membership in the Communist | Party. CORRECTION ON PANKEN Working Two Shifts | you that your presence in Austria is undesired.” Mussolini is also re- range finders for guns, The order is| | of such size that they expect to be |situation is also illustrated by von working on it for many weeks. | The men work 7 to 7 around the} | eleck with a half eur for lunch for) each shift. British Metallurgist Boasts of Shell That | Pierces Any Armor LONDON, May 14.—Sir Robert Had- field, noted British metallurgical ex- | pert, told the annual meeting of the Hadfields, Ltd., munitions plant in} Sheffield about a new type of shell now in production by this firm. | He stated that this shell will pene- | trate any armor-plate in the world. It has been patented in eight coun- The Daily Worker of May 9th car-| tries and has already passed official ried a picture of a banquet of Taim-| tests at the Shoeburyness proving The gravity of the international | Papen’s speech in Muenster, where he told an assemblage of Nazis and | Steel Helmets that “a foreign polit- ical ring has encircled us which is | identical to that of Ausust 1914” (ie. at the outbreak of the World War). The mission of Dr. Rosenberg, spe- | cial Nazi envoy to London, has failed French Chamber. 3 The United States is trying to act sador Hoosch in London ‘yesterday in an endeavor to find a “middle road” between the German demands and the Allied Powers resistance. The rivalries between the capitalist powers are increasing in intensity,r and the war-clouds of a new and bigger World War are gathering on the horizon. GERMANY CAN'T PAY PRIVATE. _ DEBTS, ADMITS SCHACHT; FRENCH RAISE TARRIFFS; FRANC WAVERS NEW YORK, May 14.—Dr. Hjelmar Schacht, in a statement made just be- fore he sailed for Germany on the Europa, declared that Germany would call a conference of Germany's pri- vate foreign creditors in Berlin short- that Germany's trade balance is di- sastrously unfavorable. . This is the first admission by a high official of the Nagi regime of the catastrophic economic situation ] i | forts to stop war were again revealed | Amazon, en route to the scene of | their boss's daughter is so busy at the many Judges, at which the Daily | grounds. follow them, téday as orts arrived here that the three Peruvian warships had been re~ armed conflict near Leticia on the | Upper Amazon. STUDENTS DEMONSTRATE AGAINST MACHADO TERROR AT CONSULATE | 250 Protest Cuban Murders and Oppression; Police Eject Protest Delegation MILITANT SECTION| STIRS WORKERS IN MAY 10th PARADE Reader Contrasts Pro- Jetarian and Bour- | NEW YORK —Two hundred and fifty students demonstrated Saturday | in front of the Cuban Consulate at 17 Battery Place, New York, against | intervention and for the release of \ political prisoners in Cuba, The dem- onstration was called by the National | Students League, together with the Union Civica de Estudiantes Exilados Cubanos (Civic Union of Cuban Stu- dents in Exile), the Federacion Estu- diantil Americana (Latin American | Students Federation) and the A. B. C, |group. It was supported by the Julio Seols. Groups Antonio Mella Cuban Club and by the May 11th, 1933 | Anti-Imperialist League., Bator, Daily Worker |_ Among the speakers were Rolando Dear Comrade: |Soria of Ala Izquierda Estudiantil de |Cuba (Left Wing Students of Cuba); T cannot seem to refrain from re- | Francisco Ibanez of the Julio Antonio porting some observations to your| Mella Cuban Club; Edmund Stevens readers who did not see the demon-/|of the National Student League, and stration against Fascism called by the| Armando Ramirez of the Spanish American Jewish Congress this past} Workers Center of Harlem. Dr. Jose Wednesday. I was standing at Washington Sq. when the parade started. First of all @ touring car heading the parade called the passerbys attention to the fact that Major General O’Ryan was immediately in back. Mounted on a sorrel horse he looked the picture of military elegance including the cor-/| set. and braces to keep him eréct.| Then followed lawyers, dentists, rab- bis, teachers, businessmen (advortising their businesses), legionaires, socialists | etc.,—the complete array of incipient fascists. If you can imagine these future fascists “demonstrating” against fas- cism in Germany you're a better man then I. Here are a few of the slogans carried on placards. “We Protest Against Fascism,” “Hitler, Cease Your Barbarism,” “The Iron Front.” last one pictured three fountain pens in a row—and naturally it was from the ‘“Forward”—the Jewish Socialist newspaper. And they are right; for writing their protests is the only thing they do—they certainly do not FIGHT against it. But then again why should they?—lIs it not their job to pave the way for fascism? “When these socialist-stitled “work- prs passed, a loud speaker mounted on a truck heralded the coming of the Reds. Immediately there was a notice- able stir among the onlookers. These people had not been aroused during the entire four hours they had been watching the parade. But the Reds started a demonstration in the true sense of the word. Starting with “ONE ENEMY—ONE FIGHT” which was} shouted from the loud speaker the parade took on a really proletarian tinge. For the first time in the parade the Soviet Union was cited as the only place in the world where racial dis- ation is unknown. The crowd responded with thunderous acclaim to} Fresneda, on behalf of the Jose Marti Club, opposed American intervention |in Cuba and called for an end of the | Machado reign of terror. William Simons, National Secretary of the Anti-Imperialist League, stated that the struggle in Cuba must go on until American Imperialism is completely ousted from Cuba, deprived of its banks and lands. Delegation Forcibly Ejected ‘The Cuban Consul had the police push out of his office, which he called “Cuban territory,” the delegation | elected by the meeting to present its demands: (1) The immediate and un- conditional release of al political pris- oners, and (2) the reopening of the University of H avana, In view of the increasing Machado terror, the Anti-Imperialist League urges all workers, farmers and stu- dents’ organizations in the United States and in its colonies to send tele- grams to Gerardo Machado, Havana, Cuba, demanding the immediate and unconditional release of all poitical prisoners and the reopening of Havana University. Notify the Anti-Imperial- ist League, at 90 East 10th Street, New York City. the militant slogans of these class- conscious workers. Worker after work- er could no longer restrain himself but joined with these alert, militant workers. I have participated in many de- monstrations—this is the first time I watched one (I could not take off from work). But I can tell you this: that the contrast between the funeral forepart of the parade and the mili- tant, class-conscious tail-end demon- stration undoubtedly convinced thou- sands of workers in the audience to which part they belonged. @igned) Sam Phillips an jee shows. ae ND what has become of our con- |** tributors? If the present strike among our contributors continues, we will have to write the column our- | selves. You wouldn’t want that to |happen, would you? (Continued from last issue) By FRITZ HECKERT Why Was the German C. P. Unable to Seize Power? In this position of the class forces, answers must be sought, firstly to the question as to why the C. P. G. was unable in the conditions of today to raise hefore the broad masses of the proletariat the question of the seizure of power; secondly to the question as to why the C. P. G., which calculated that it would be able to drag the so- cial democratic workers in its wake, was unable to organize, on January 30 | at the moment of Hitler's seizure of power, a decisive political strike. Such a strike on January 30 Would have been no ordinary strike of pro- test. Had it been successfully car- ried out such a strike would have mobilized not only all the forces of the proletariat, but would also have caused the masses of the petty-bour- | geoisie and the peasantry, who were adhering to fascism, to vacillate and would have in this way been turned into the starting point for revolution- ary mass action against the fascist dictatorship. It is precisely for this reason that the A. D. G. B. (General German Federation of Labor) and the S. P. D. (Social Democratic | Party) refused to support the appeal | of the Communists for a strike and | thwarted it. | The XIIth Plenum of the E. C. C. I. | pointed out two lines of develop- ment of fascism; in one group of countries—the line of declining fas- cism (Yugoslavia, Poland, Italy); in the other group—the line of rising fascism — Germany was, counted amongst this latter group of countries. But even this line of rising fascism in Germany exhibited considerable oscillations, symptoms of the internal crisis of German fascism (the break- ing-off of the Otto Strasser group, the quarrel with the Gregor Strasser group, the disbanding of certain Storm Troop sections, the loss of votes at elections, etc.) Had the A. D. G. B. and the S. P. D. accepted the proposals of the C. P. G. for a united front before and on January 30, and had they carried through in co-operation with us a political mass strike, the process of internal crisis within German fascism would have been hastened. The be- trayal of social democracy, however, gave events another turn. The fact that the Communists suc- ceeded in this situation in organizing isolated strikes was a real victory for the Communists. But as a result of | the betrayal of social democracy they | did not succeed in organizing a de- | cisive mass political strike on Jan- uary 30. It is therefore clear that with the relative class forces at the time the German Communists could not raise the question of the seizure of power by the proletariat. We Ger- man Communists had not, as had the Nine new factory cells have been organized by the Young Communist League in Thuringia. Eight meetings of junior trade unionists adopted resolutions against the Fascist dic- tatorship. Three labor camps were dissolved in Thuringia as @ result of the bitter fight of the Young Com- Worker reported Panken was present. The picture was brought in by a worker who assured us of the auth- enticity of the picture. Panken, through the Socialist press, | states that he was never there, a invited. We were in error in publishing this | picture. {Russian Bolsheviks in October, 1917, jan overwhelming majority of the toilers; we had not even a majority of the proletariat on our side. A substantial part of the peasantry and the urban petty-bourgeoisie have not yet overcome their illusions with regard to nationalism, The entire armed forces of the Reichswehr, the police, the Stahlhelm, the Storm Troops, were drawn up against the unarmed proletariat. The Russian Bolsheviks, however, had on their side, as is well known, not only armed workers, but also a substantial part of the army and enjoyed the bene- yolent neutrality of another part of the army. This position of the class forces determined the temporary defeat of the proletariat. Is the Revolutionary Wave Over? Does this mean the end of the wave of revolution in Germany, the end of the matured revolutionary crisis in Germany? No, it does not mean that. In spite of the terrible fascist ter- ror the German proletariat has not yet come to terms with the bour- geoisie. It has not capitulated and will not capitulate in spite of the moral bankruptcy and the betrayal of Wels and Leipart, who have surren- dered and pleaded for the mercy of Hitler. The German proletariat is carrying on, in hundreds of places, partial struggles for its positions and its organizations. The working class of Germany is evincing class deter- mination and at the same time per- severance and the ability to ma- noeuyre—a quality that is necessary in order to avoid, in spite of every kind of provocation and betrayal, entering upon the decisive struggle in a situation that is favorable for the enemy, Communist Prestige Among the As regards the Communist Party, it is not allowing itself to ‘be isolated from the masses, despite the terror and the provocative action of Hitler and Goering. Never has the C. P. G. had so much moral prestige amongst the working masses, as now, when the social-democratic leaders are licking the boots of Hitler, while the Communists are unfurling the flag of implacable struggle against bloody fascism. The talk of the alleged de- feat and political death of the C. G. is the philistine chattering of stupid and ignorant people. No one can shatter and kill the varty of the working class, unless it brings about its own death by a false anti-:evolu- tionary policy. Social democracy has been annihilated as a party not be- cause Hitler proved himself the stronger; social-democracy has been annihilated, because it brought about, its own moral and political death when it renounced the fight against P. | is encount fascism; when it stooped to serve fas- cism. The Communist Party is strong and unconquerable, because it has never retreated, because it is not re- treating from its revolutionary battle lines, because it did not surrender and will not surrender to the enemies of the proletariat and their bloody agent, fascism. It holds the flag of implacable struggle against fascism ever in its hands and always will. This also explains the fact that the C. P. G. has none of the moral illness and political faintness that 1s now devouring social democracy. This explains, furthermore, why the C.P.G. enjoys a moral authority such as it has never enjoyed before amongst the millions of masses of the proletarians of Germany who are not prepared to yield to bloody fascism. ‘That is why I believe that the pres- ent position of the German bourge- oisie is not at all consolidated, that the proletarian revolution in Germany must be victorious, that fascism in Germany must be vanquished, and will be vanquished. Only fools can believe that the bourgeoisie could establish a stable hegemony over the peasantry and the urban petty-bourgeoisie under the conditions of the present crisis over a period of years, Critical periods similar to the present period in Ger- many have been signalized precisely by the fact that days and weeks re- place years and centuries of ordinary times. Who would dare to maintain that a period of economic boom has arrived in Germany, and that the bourgeoisie will succeed in solving the internal and external conflicts of Germany capitalism? Fascism—German and Italian German fascism cannot be com- pared with Italian fascism. Italian fascism came to power at the begin- ning of the period of capitalist stab- ilization—German fascism at the end of this period. Italian fascism made use of the decline in the wave of rey- olution, German fascism has come into power during the rise of this wave. Italian fascism was that of @ country that had been victorious in the world war it was a participant in and active supporter of the Ver- sailles system; German fascism is the passive object of that system, and at the very first steps of its existence tering growing international difficulties. Italian fascism came to power at a moment when the Treaty of Versailles had setiled the stability of international relations for a num- ber of years. Gorma fascism had seized power at a moment when the relations created by Versailles are breaking up. The German proletariat, is more numerous, it has the school of a proletarian revolution Matt bl behind it, unsuccessful as that revo- lution was. The German proletariat Sir Robert added: “When the time comes, we shall be ready to meét all the demands of the army and navy for these shells.” Subscribe for the six-page Sat- urday feature edition—52 times a year for $1.50. ly “to meet the present situation.” Up Schacht admitted that the gold re- serve of the Reichsbank is “down to an exceedingly low figure’ and de- creasing every week.” He also admitted Germany’s difficulty in obtaining the foreign exchange to meet these pay- ments, which is tantamount to saying has created the strongest Communist | set up the principle of capitalist au- Party outside of the Soviet Union. whereas the Italian proletariat has not possessed so strong a party since the Leghorn: split. Can German Capitalism Solve Its Crisis? Is the German bourgeoisie capable of solying a single one of the internal and external contradictions of Ger- man capitalism under the conditions of the world crisis? Can it liquidate unemployment, improve the extra- ordinarily serious position of the workers, put a stop to the impoverish- ment of the peasantry and the pet- ty-bourgeoisie, set the plants and fac- tories in motion once again, assure the stability of the currency, conquer the external markets necessary for German industry, put an end to the Versailles yoke? No, it cannot do that. In the present world economic and political situation the fascist gov- ernment is incapable of solving even one of these problems. What is tak- ing place in Germany today is the death-throes of capitalism, not» its “stabilization”. Only a petty-bourgeois can believe that the road of the German revolu- tion will lead from one victory of the Communist Party in:the elections to another, without the bourgeoisie, with its experience of the Russian October revolution, waging a bitter fight against the proletarian revolution. It will fight not only in Germany, but also in all the capitalist countries as soon as the question of power be- comes acute. To win over the major- ity of the working 4lass the Commu- nist Parties are passing through bloody battles and will have to fight other bloody battles. II. The Prospects of the Fascist Dictatorship. What are the prospects of fascism in Germany? The collapse of the fascist regime in Germany depends first and fore- most on the unity of the proletariat as a class on the road to winning of a proletarian majority by the C. P. G., and the liquidation of the in- fluence of the reactionary social dem- ocracy, which hitherto had the ba- jority of the proletariat behind it. The unity of’the proletariat as a revolu- tionary fighting class will alone hasten the process of estrangement. from fascism of those sections of the peasantry and of the urban petty- bourgeoisie which hitherto supported it. Both these factors, which react upon one another and increase the fighting ectivity of the messes, will bring in their wake the crisis of “ihe leading groups” in the ranks of the bourgeoisie, the disruption from What Is Happening i in Germany? | tarchy. Apart from the fact that capitalist autarchy is nonsense in the economic sense, German capitalism, with its fascist policy of autarchy, which rests upon a strict control of imports, is faced with two insoluble and contradictory problems; first, the necessity for creating a home market capable of absorbing production, and, secondly, the forcing of exports. But how can the fascist regime extend the home market when there are nine million unemployed in the country, when total wages have sunk 50 per cent during the years of crisis, when the income from agriculture, in spitd of the introduction of a protective duty and of the subsidies, has dur- ing the last three years declined by more than 30 per cent, when large- scale bankruptcies are ruining mil- lions of small savers, and, finally, when two-thirds of the productive machinery is lying idle? The establishment of strict quotas in international trade presupposes for each capitalist country not only a dwindling of imports, but causes also a shrinkage of exports. The Ger- man bourgeoisie cannot count upon being allowed to shut its home market against imports and at the same time maintain or extend its industrial ex- ports. The decline in exports is a danger for the German mark. By now the gold cover in Germany, ac- cording to the statement of Schacht, has dwindled from 3.3 billion marks down to one-ninth of that figure. The severe decline of a favorable balance of trade in Germany in the years of the crisis from three billion marks down to almost one billion, reflected the uninterrupted and precipitous process of the decline of German exports. In January and February German exports declined on an average to one-fourth of the monthly averages of the previous year. ‘The danger for the stability of the German mark becomes all the greater in that, as a result of its bank crash- es, the U.S.A. has actually taken the path towards the abolition of the gold standard, and has thereby heightened its ability to compete in foreign markets. Here again the German bourgeoisie stumbles upon further difficulties; in order to enter into competition in foreign markets with other capitalist countries. it must have recourse to inflation. This, however, unavoidably raises the cuestion of the end of th> more- torium that Germany has mainiained for her private debts, Thess c7un- tries which have invested in Ger- many some 17 billion marks in the shape of loans demand immediate payment.. Fascism is faced with fin- government raised the tatiff on lard | 50 per cent yesterday to shut off the importation of that commodity al- most entirely. This action nullifies the tariff truce agreed to by Germa- ny in London. Germany has decided . to-make ind} payments due Tuesday under the ' Young Plan in foreign exchange in. stead of in gold, as provided in the’ contracts. It tlaims the actions of | the British and American goyern- ments after they went off the gold | standard as a precedent for doing so. PARIS, May 14.—The day after it signed the world tariff truce, the French government yesterday imposed taxes for import licenses on forty classes of articles hitherto free of these taxes. Nearly all meats and poultry, bar- ley, butter, turpentine, and certain kinds of lumber, are affected by this impost. The taxes range as high as nine dollars per 100 pounds and will hit Argentina and the United States chiefly. They are practically prohi- bitive in some cases. ‘The Ministry of Agriculture has al- ready introduced a bill into the Cham- ber of Deputies raising the tariff on fruit, which too hits exports from | America severely, He The Ministry of Commerce is draft- ing a new Jaw to raisethe minimum | tariffs on more than”'100 articles, aimed chiefly as a reprisal against Germany. The proposed increas‘ woud also injure American expot as well as those from other coun/ tries. The pretext used forsthese taritt © vises is that they do not violate the tariff truce as “they were drafted or authorized by Parliamenp before the truce was signed.” at These raises in import. duties are making French business circles very pessimistic regarding the: outcome of the World Economic Conference, France and Canada yesterday signed a trade agreement in Ottawa, providing for mutual reductions in tariffs amounting to as much as 50 per cent. This will increase Canadian exports to France largely at the ex- pense of the United States. Finance Minister Bonnet held a conference with financial experts yes- terday on how to save the franc, view of the depreciation of the and the pound, the world’s two lead ing currencies, French foreign trade is practically at a standstill, owing to the distur! state of world trade, Ib’is repr that France has already fixed a at which a gold embargo. will be ap. plied if the dollar continues to drop, The government's budget deficit, which is mounting ev day, is also adding to the worries’ « ich fin- ancial circles, endangering the franc’s stability. ‘The $130,000.00 British loan for sta~ bilizing the franc is already largely and Tardieu’s Right group ms going off the gold siandeard. Fronce has been stead= ily drawing gold from Holland, and if Holland should go ‘off the below of the fascist machinery of terror and dictatorship. Im the economic sphere fascism has ancial bankruptcy. © (TO BE CONTINUED) standard, France may have to ag the drain of gold to Great Britain continues SERRE ED reo of Fascist Germany. | BERLIN, May 14—The German ||